hydrogen and renewables. Andrew Forrest unveils massive green...

hydrogen and renewables.

Andrew Forrest unveils massive green energy plan for Fortescue Metals Group


Fortescue Metals Group chairman Andrew Forrest. Picture: Supplied.

• NICK EVANS
  RESOURCE WRITER
  
• 48 MINUTES AGO NOVEMBER 11, 2020
• 20 COMMENTS

Mining billionaire Andrew Forrest wants to turn Fortescue Metals Group into one of the biggest energy companies in the world, outlining ambitious plans at the company’s annual shareholder meeting for Fortescue eventually produce 235 gigawatts of renewable energy, or five times the current capacity of Australia’s National Energy Market.
Dr Forrest told Fortescue shareholders on Wednesday Fortescue plans to challenge global energy majors such as Chevron as he tours the world trying to stitch up early stage deals with national governments to put Fortescue’s foot on the best renewable energy opportunities.
Fortescue Future Industries, a subsidiary of the WA iron ore miner, has already signed early stage agreements in Papua New Guinea, Indonesia and beyond for potential hydro electric and other renewable energy projects, and Fortescue itself has been investing heavily in plans to partly power its iron ore mines through a mix of solar and wind generation.
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In addition the company has cut deals with Australia’s CSIRO to commercialise hydrogen and ammonia technology.
Dr Forrest said Fortescue had now engaged with 25 governments across the globe to talk about potential energy projects, flagging an ambition to eventual rival Chevron as a global energy producer, targeting total production of 235GW of renewable energy a year - or five times the capacity of the NEM.
“After scientific and personal analysis of the renewable energy resources of our little planet, I can assure you that there is more than enough renewable energy to sustainably and economically supply every person on this planet, from this time forth,” he said.
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“It is our job to respectfully use these readily available renewable resources and supply the world’s fuel and power at sufficient scale to satisfy the need for abundant, cheap, zero pollutant energy.”

Fortescue plans to produce Fortescue 235 gigawatts of renewable energy.
Dr Forrest said Fortescue was already planning a multi-gigawatt hydrogen and ammonia system in the Pilbara to power its mining fleet, and replace fossil fuels that fuel its operations, displacing up to a billion litres of diesel a year.
“We think we can move from importing diesel to producing all of our own energy and all our own fuel. It is a multi-billion dollar investment and we have had a number of financiers approach us to finance this away from Fortescue’s own balance sheet,” he said.
Dr Forrest said he wanted to put Fortescue at the forefront of the coming “stampede” into renewable and green hydrogen and ammonia production.
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“We know that if we’re going to meet and hit the Paris targets, we’re going to need to need a 70 per cent reduction in carbon emissions,” he said.
“I see that once we can create sufficient renewable energy and renewable fuels where - like the oil and gas sector - we can guarantee reliability of supply at volume and scale that there will be a veritable stampede into renewable energy and green industry,” he said.
“When we, as Fortescue, a pioneer at the time, can really lead the way in large volume and low cost green hydrogen and ammonia, shipped around the world, then you’ll see others join and you’ll see the commercially driven end of climate change.”
Dr Forrest did not put a price on Fortescue’s ambitions, but said it would be funded by debt in the subsidiary, that would not risk the miner’s main balance sheet.